Follow by Email

Monday, May 2, 2016

Paul Krugman, "The Diabetic Economy": Europe Bad, America Good

"Things are terrible here in Portugal, but not quite as terrible as they were a couple of years ago. The same thing can be said about the European economy as a whole. That is, I guess, the good news.

The bad news is that eight years after what was supposed to be a temporary financial crisis, economic weakness just goes on and on, with no end in sight. And that’s something that should worry everyone, in Europe and beyond."

But not to worry. According to Paul, everything is hunky-dory in the US:

"Meanwhile, the overall economic and political situation in America gives ample grounds for hope, which is in very short supply over here."

Yup, who cares if US national debt has reached some $19.3 trillion.

Who cares if America's gross debt to GDP ratio is 105%, compared with 65% for Holland, 71% for Germany, 89% for the United Kingdom, and 96% for France.

And who cares if Apple just reported its first drop in quarterly revenues in 13 years with increasing competition from Chinese cellphone makers.

"The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents – #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back — $30,000 for every man, woman and child. That’s irresponsible. It’s unpatriotic."

Well, US debt now amounts to $60,000 "for every man, woman and child." That's irresponsible. It's unpatriotic. More to the point, it's unsustainable.